No eggs are left behind when a nest is overturned. In today’s era of economic globalization, just a butterfly flapping its wings may cause a tornado somewhere else. The epidemic is raging around the world, causing a heavy blow to the global economy. Many industry giants around the world have closed stores, laid off employees, and gone bankrupt.
Bankruptcy status of the three major industries in the world
The “bankruptcy wave” in the three major industries of retail, aviation, and petroleum has begun
The credit ratings of many companies have been downgraded
The risk of bankruptcy has intensified
As As the epidemic spreads around the world, the risk of bankruptcy for overseas buyers may continue to increase, and export risks will also increase.
With the wave of bankruptcies of overseas companies coming, export companies should pay attention to the risks brought by the bankruptcy of overseas buyers. The following countermeasures are for reference.
1. Timely registration of claims. Registration of claims is a prerequisite for export enterprises to obtain bankruptcy distribution. If an application for registration of claims is not submitted in time, export enterprises will face “loss of money and goods”. situation. In daily trade, export enterprises must pay attention to retaining written evidence related to transactions, including but not limited to written contracts, orders, invoices, bills of lading, emails and other materials that can prove the establishment of claims, and ensure that they can submit qualified claims within the specified time. Registration application.
2. Pay attention to time nodes
According to the bankruptcy laws of various countries, transactions within a specific date can enjoy priority for repayment. If an export company learns that the buyer is bankrupt, it should promptly obtain a receipt certificate issued by the buyer or carrier. If there is a transaction that meets the conditions for priority compensation, it can submit an application to the court through a professional lawyer to maximize compensation.
3. Track the status of the goods
After the buyer goes bankrupt, there will usually be some goods in transit or goods that have not been picked up at the port. Export companies should actively contact the freight forwarder or carrier to confirm whether they can control the rights to the goods. If the rights to the goods are controllable, export companies can reduce losses by returning the goods, reselling them, etc. For some goods that cannot be returned or resold, corresponding loss reduction plans can be considered based on the buyer’s bankruptcy form.
4. Use the property rights retention clause
Retention of property rights means that the two parties agree that after the goods are delivered, the seller retains the ownership of the goods until the buyer pays. When the buyer goes bankrupt, the goods with reserved property rights do not belong to the bankruptcy property, and the export enterprise can exercise the right of retrieval or enjoy the priority right to compensation in accordance with the law. At present, many countries have recognized this clause and have different regulations on the use of property rights reservation. However, some countries require that property rights reservation clauses need to go through registration procedures before they can take effect. It is recommended that export enterprises can consult based on the characteristics of their own products when concluding a contract. Advice from a professional attorney.
5. Use the key supplier system
In bankruptcy proceedings, the claims of export enterprises are generally As unsecured claims, the bankruptcy distribution is in a low position and it is generally difficult to obtain distribution or only a very small proportion of distribution can be obtained. However, if you can apply to become a “key supplier” of the bankrupt buyer and continue to supply goods, its “old debts” before bankruptcy can be paid off in part or in full first, and shipments during the bankruptcy period can be guaranteed to be no less than the original conditions. payment terms. If the buyer fails to reorganize and enters liquidation proceedings, the “new debts” incurred by the “key suppliers” during the bankruptcy period will be regarded as bankruptcy management expenses and receive priority for repayment. Obtaining the status of “key supplier” is of great significance to unsecured creditors, and export companies can use their own advantages to actively strive for it.
★ Special Note: The above information is for reference only. Readers are asked to make independent judgments based on specific circumstances in practice. Any risks and legal liabilities arising from decisions based on this information are borne by the readers themselves.
After the risk of bankruptcy occurs, export companies maintain a positive response attitude, promptly grasp the status of the goods, and understand the buyer’s bankruptcy information to minimize losses. </p
